Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

September Could Be Worse Than August for Stock Market Performance

Stock-Markets / Stock Markets 2011 Sep 02, 2011 - 08:18 AM GMT

By: Money_Morning

Stock-Markets

Best Financial Markets Analysis ArticleKerri Shannon writes: Investors beware - the dismal days of September market performance are here.

September notoriously often leaves markets in negative territory. Since the start of the Dow Jones Industrial Average in 1896, the index has lost an average of 1.07% in September, with a 0.71% average gain for all other months.


That's a 1.78-point spread - enough to be "statistically significant at the 95% confidence level," and be considered a genuine pattern by statisticians.

More discouraging, the market has performed especially poorly in past Septembers when the preceding months were weak.

And that's where we are today.

August took markets on a wild ride. The Standard & Poor's 500 Index fell 5.7% and the Dow 4.4%. The month included two of the top ten worst-performing Dow days ever - a 635-point drop on Aug. 8 and a 513-point drop on Aug. 4.

Now with investors digesting a slew of disappointing economic reports, and the U.S. Federal Reserve unlikely to announce any stimulus measures until the end of the month at the earliest, it doesn't look like this September will buck the trend.

In fact, it could easily be worse.

30 Dismal Days Hath September
Investors tend to misidentify October as the worst month for stocks, but September has had its share of dismal days.

The Sept. 29, 2008 decline of 777.68points remains the single-biggest point drop ever. That freefall wiped out more than $1.2 trillion in shareholder wealth, the first time a single-day market loss exceeded $1 trillion.

And don't forget the Great Crash.

Back in 1929, September played a big role in the series of events that led up to the Great Crash and the sell-off that followed.

Indeed, after a six-year run that saw the Dow enjoy a fivefold increase, the index peaked at 381.17 on September 3, 1929. Stocks then fell for a month, losing 17% of their value on what historians now consider the "first leg" of the decline that presaged the Great Depression.

No one is exactly sure why September is such a bear for markets, but this one is on course to be filled with more down days.

Gloomy data from jobs, housing and manufacturing reports is dragging down consumer and investor sentiment after August's rocky market performance.

An ADP Inc. (Nasdaq: ADP) employment report released Wednesday said private-sector payrolls increased by a smaller-than-expected 91,000 in August. Economists had expected the ADP figure would rise by about 100,000. At the same time, the expansion for July was revised to 109,000 - down from a prior estimate of 114,000.

That follows a Monday report by payroll-processor Intuit Inc. (Nasdaq: INTU) that showed hiring slowed and employers reduced hours.

The non-farm payroll report coming out today (Friday) will likely show a weakening U.S. job market due to slowing manufacturing and nervous consumers. Consumer sentiment about the U.S. economy has steadily declined since February, and now is back to its lowest level in two years.

And housing data released Wednesday showed yet another price drop for that fragile sector.

September market performance could get a boost from the Fed if the central bank announces more quantitative easing, but that won't be before the conclusion of its two-day meeting on Sept. 21. If the Fed fails to implement QE3, the markets could take an even bigger hit.

"I expect this September to be rougher than normal in terms of volatility, but the Fed is probably going to tip its hand with regard to further stimulus," said Money Morning Chief Investment Strategist Keith Fitz-Gerald. "If we get more drugs for the addicts, some sort of knee jerk bounce is likely. No intervention will mean a quick drop because traders are preconditioned at this point that news bad enough to require more stimulus is somehow good news for market prices."

How to Prepare for Poor September Market Performance
Some investors think fleeing the markets is the best way to protect portfolios, but getting out only ensures that you'll miss profits.

Instead you need to know where to look in volatile times.

"I think investors need to be hunting for stocks that are largely isolated from fiscal nonsense and a recession," said Fitz-Gerald. "If they're beaten down and have a high income, even better. Timing never works, which is why you always want to play offense even if you are being defensive. Adjusting your playbook is a far better way to go."

To prepare you for a possible stock-market tumble, we've shared a number of defensive plays, including high-yield stocks, "glocal" companies, emerging-market stocks, and gold, silver and other precious metals.

But as some of you know, we've also gone a step further.

We've put together the best picks from our editors in the new daily Private Briefing column.

Private Briefing offers you not only market and economic analysis, but a daily detailed look at the best ways to profit and protect your portfolio. Executive Editor William Patalon III delivers a new idea each day that he's discussed with our team of financial experts.

So far Patalon's daily briefings have helped readers get in on a small biotech firm that jumped 25% in three days, a silver miner that climbed 7% in four days, and the gold hedge that protected investors from a 6% drop in the metal's price.

We don't just advise people what to do to protect themselves; we show them how to do it.

To learn more about Private Briefing, click here for a special report.

Source :http://moneymorning.com/2011/09/02/get-ready-now-for-dismal-september-market-performance/

Money Morning/The Money Map Report

©2011 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules